Joined: 22 Aug 2013
Location: Hudson Valley
working f/time with a 401k & collecting social security
I am 66, working full time and will be collecting SS next month. I can use the catch-up to put about $15k in the 401k. Should I do this to avoid paying taxes and use my SS for living expenses. Or can I just put the SS into and IRA to avoid taxes.
Sun Jan 25, 2015 11:26 pm
GardenCat Full Member
Cash: $ 11.60
Joined: 07 Dec 2014
I don't believe you can put ss money into an IRA (It needs to be earned income). But if you are working, you can put as much as you can afford into your 401K while living off your ss.
You could also open a Roth IRA and put some after tax money into it, and have tax-free withdrawls in 5 years (according to current tax laws).
You may want to pay a visit to your local ss office and talk with an employee there. I have found the people at our local office in Colorado to be very knowledgeable and helpful. It just might be worth it to wait a few years to draw your ss payments if you are still working, in good health, and living comfortably now...